Wealthfront (NASDAQ:WLTH) Shares Gap Down After Earnings Miss

Shares of Wealthfront (NASDAQ:WLTH) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $8.40, but opened at $8.03. Wealthfront shares last traded at $7.69, with a volume of 776,617 shares trading hands.

The company reported ($1.31) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.24) by ($0.07). The business had revenue of $96.14 million for the quarter, compared to the consensus estimate of $91.95 million.

More Wealthfront News

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront reported record results — fiscal 2026 revenue of $365.0M and a Q4 record of $96.1M; total platform assets grew 17% YoY to $94.1B. These metrics support the growth story. Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Company announced a share repurchase plan alongside results — buybacks can support the share price and signal management confidence. Wealthfront Announces Record Results and Share Repurchase Plan
• Neutral Sentiment: Earnings materials and full slide deck / call transcript are posted — useful for digging into margin drivers, guidance and customer metrics before taking a position. Wealthfront 2026 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Some firms kept constructive ratings but cut targets — JPMorgan remains “overweight” with a lowered $10 PT; Wells Fargo also maintained overweight at a reduced PT. These keep upside scenarios on the table but reflect lower near-term confidence. Analyst Notes (Benzinga)
• Negative Sentiment: Wealthfront missed EPS estimates (reported -$1.31 vs. -$1.24 consensus). The miss prompted a sharp selloff and prompted several analysts to cut forecasts. That EPS shortfall is the primary near-term negative catalyst. These Analysts Cut Their Forecasts On Wealthfront After Q4 Earnings
• Negative Sentiment: Multiple securities-law firms (Faruqi & Faruqi; BFA Law) announced investigations into Wealthfront — potential litigation risk can increase volatility and pressure the shares. Faruqi & Faruqi Investigation Notice
• Negative Sentiment: Several firms (including Keefe, RBC and others cited in the press) issued more pessimistic forecasts or lowered targets after the print, adding selling pressure. Analyst Forecast Coverage

Wall Street Analyst Weigh In

Several brokerages recently issued reports on WLTH. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and set a $9.50 price objective (down from $13.50) on shares of Wealthfront in a report on Thursday. Wall Street Zen upgraded Wealthfront from a “sell” rating to a “hold” rating in a research report on Friday, January 23rd. JPMorgan Chase & Co. cut their price target on Wealthfront from $16.00 to $10.00 and set an “overweight” rating for the company in a research note on Thursday. The Goldman Sachs Group decreased their price objective on shares of Wealthfront from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Thursday. Finally, Citizens Jmp initiated coverage on shares of Wealthfront in a report on Tuesday, January 6th. They set an “outperform” rating and a $20.00 target price for the company. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Wealthfront presently has a consensus rating of “Hold” and an average price target of $12.67.

Hedge Funds Weigh In On Wealthfront

Several hedge funds have recently bought and sold shares of WLTH. Sandia Investment Management LP acquired a new position in shares of Wealthfront in the fourth quarter worth $44,000. Barclays PLC acquired a new stake in shares of Wealthfront during the fourth quarter valued at $136,000. Symmetry Investments LP acquired a new stake in shares of Wealthfront during the fourth quarter valued at $190,000. Realta Investment Advisors purchased a new stake in Wealthfront during the 4th quarter worth about $194,000. Finally, Hudson Bay Capital Management LP acquired a new position in Wealthfront in the 4th quarter valued at about $245,000.

Wealthfront Stock Performance

The business’s 50 day moving average price is $8.61.

Wealthfront Company Profile

Wealthfront (NASDAQ:WLTH) is a technology-driven wealth management firm that provides automated investment services to individual investors. Operating as a robo-advisor, the company uses algorithms and software to construct and manage diversified portfolios largely composed of low-cost exchange-traded funds (ETFs). Its platform is geared toward long-term, goal-based investing with an emphasis on passive strategies, automated rebalancing and straightforward user experience delivered through web and mobile applications.

The company’s product suite includes automated portfolio management, tax-loss harvesting and goal-planning tools that help clients set and track financial objectives.